Transgender activist, Jane Fae, says that the biggest issue in many offices for transgender professionals is use of the toilet. Photograph: Sarah Lee for the Guardian

For transgender people, making the difficult decision to transition from being publicly a man or woman to the gender one really identifies with can be a traumatic experience.

But while employers can help by showing understanding and support, some companies' response to the issue, though well-meaning, can lead to discrimination and humiliation.

According to the lesbian, gay, bisexual and transgender charity Stonewall Scotland, transgender issues still cause "a lot of anxiety" among employers.

"There's still an area of fear among employers about what they do, how they do it and whether they might get it wrong," said Stonewall Scotland director Colin McFarlane.

He adds that while employers are making "great strides" in terms of lesbian, gay and bisexual equality, they are lagging behind providing for transgender staff, despite being covered by employment legislation under the Equality Act 2010.

McFarlane explained: "There's a lack of understanding about what the real issues are. Some employers lump trans issues in with sexuality. What we find in the work that we do, is employers still have that lack of understanding."

Conversely, transgender activist Jane Fae says that in some cases, employers' self-conscious attempts to cater for transgender workers results in bosses tip-toeing around trying not to offend anyone, marginalising transgender staff even more.

According to Fae, the biggest issue in many offices is use of the toilet. Employers who ban their transitioning staff from using the female toilet may face legal action. "People try and fix this problem in ways that people often don't realise are offensive," she says. "Such as saying if you're trans you can use the disabled facility.

"It just marks people out as different and if there are any employees who don't like people transitioning, it almost endorses that."

It seems that many employers are simply guilty of over egging the pudding.

"When transitioning, from the public perspective, it's mostly about the clothes," Fae explains.

"Some people may also start to take hormones, which may have some side effects. But it's not a big thing. In some ways both the trans community and employers make too much of a deal about it.

"We don't accept people saying women on their periods who may be feeling hormonal shouldn't be expected to work. It's absolutely ludicrous and I think it's equally ludicrous to apply that same attitude to trans employees."

The greatest hurdle to a smooth transition, however, is an administrative one and a case of not what you are, but who you are.

Changing your forename and gender at work remains troublesome for many, despite its relative ease in the eyes of the law, and it's a sticky situation which Fae has been campaigning to change.

"The problem has arisen over the last decade, because of money laundering and the terror threat, people are scared silly about identity," she explains.

"If you come into work today as Matthew and then come in tomorrow as a girl called Carol, unless you have an identical twin somewhere, you don't need much in the way of proof.

"People might say they can't call you Carol unless you have a piece of paper to prove it, but that's wrong in law and actually, the Inland Revenue will quite happily change your name and gender on the system with the same level of security. So, it's not an issue.

"Therefore, we are and have been putting more and more silly additional requirements into the pot."

Being transgender, an umbrella term used to describe a whole range of people whose gender identity differs in some way from what they were assigned at birth, has no impact on a person's work output and a progressive equality policy can enhance a company's reputation and improve employees' performance and productivity.

Fae says the solution is to offer clarity on all the issues surrounding transitioning and being transgender, as well as providing a safe space for people to discuss their fears and anxieties.

"There are people, who for religious reasons, find it difficult to accept having trans women at work and there has to be a space for them to explore that," she insists.

"But the key thing is the employer needs to make it absolutely clear that there will be no leeway or concessions for people who act in a discriminatory manner as it not only reflects on the company, but will be treated as a criminal offence.

"On the one hand, give people the information and a space to understand and know more so they understand that transitioning is a very traumatic part of someone's life, but at the same time there should be penalties for people who have a go."

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